Eu Supply Share Discussion Threads

[slicethepie] 28/3/2019 13:21

Amazed that the administrator sold this stock to winterflood, obviously a mate. If placed via the companies broker they would have got a much better price and would not have taken the 1.25p that winterflood are making ie £60,000. City financial holders are being raped.....disgusting practice.

[rivaldo] 28/3/2019 07:15

Good to see EUSP reiterating their maiden £0.4m PBT and confirming everything else is going to plan.

Results will be out on 26th April:

[rivaldo] 27/3/2019 13:27

City Financial's forced sales are decimating a load of share prices at the moment (and Miton seem to be doing the same).

A buying opportunity here methinks.

[wjccghcc] 27/3/2019 13:03

Yup. At 8.25p.

[slicethepie] 27/3/2019 12:56

Looks like the city financial holding has been sold

[rivaldo] 18/3/2019 07:11

Presumably small in financial terms as an RNSNON, but good to see a maiden contract win in the O&G sector - with the promise of "considerable additional business" to come:



"We are pleased to announce the signing of this maiden agreement in the oil and gas sector. It is a sector with significant needs in both qualification, tendering, contract management and risk management. We believe this first inroad in the oil and gas sector may lead to considerable additional business in the next three years."

[rivaldo] 08/3/2019 08:45

Good to see more contract wins whilst I was on hols, particularly with new clients in both Denmark and Germany - and the involvement with the huge Femern Tunnel.

EUSP are so far off the radar I noticed that ADVFN's Monitor didn't even pick up the 5th March contract as a news item! So some may have completely missed it.

Not long to next month's results and a maiden £0.4m profit and around £1m net cash.

[rivaldo] 13/2/2019 08:53

From Stockdale's new note FYI:

"Maiden PBT for FY2018 above expectations

In its FY2018 trading update, EU Supply (EUSP) has announced that it expects to report adj. PBT of £0.4m vs the SSL forecast of £0.1m and a loss before tax of £0.2m in FY2017. The anticipated revenue of £5.1m was slightly below our £5.4m forecast and was up c.10% on the £4.7m reported for FY2017. Importantly, the recurring/repeat proportion of revenue was maintained at c.70%. The investment in the micro procurement solution is likely to increase recurring sales in due course. We retain our 25p DCF-derived TP and Buy rating.

FY2018 was a watershed year for EUSP as it is going to report its maiden PBT of £0.4m. Part of the reason for the overshoot was that there was £0.3m of capitalised development vs our forecast of £0.1m. However, even allowing for this the adj. PBT was still around double our forecast. This was despite revenues of £5.1m coming in below our £5.4m forecast. We are encouraged that the percentage of recurring/repeat revenue was increased to c.70% in FY2018 vs 66% in FY2017.

We highlighted both at the time of the fundraising in May 2018 and with the interim results in September 2018 that the micro procurement solution would not deliver any meaningful revenues until FY2020. As a consequence of maintaining our core revenue growth rate forecasts on the lower FY2018 sales base, we have reduced our sales forecasts to £5.6m (£6.0m) and £6.7m (£7.7m) for FY2019E and FY2020E respectively. However, partly because more of the additional development costs are being capitalised, we have increased our adj. PBT forecast for FY2019E to £0.5m (£0.1m) and only edged back the FY2020E forecast to £1.1m (£1.4m). As the vast majority of the micro procurement sales will be recurring, in our view, the quality of revenues will improve further in due course.

We have argued consistently over the last 24-30 months that EUSP’s share price should improve as there is greater confidence in its ability to become sustainably profitable. With the move into adj. PBT profitability confirmed today, we believe that this is now the case, yet the share price has underperformed the market over the last 12 months. Even with the tweaks to our FY2019 and FY2020 forecasts, we are happy to maintain our conservative DCF-derived target price of 25p and our Buy rating."

[rivaldo] 12/2/2019 09:36

For me the main positive - apart from the now-achieved profitability - is the 71% and rising recurring income. This is tremendously attractive.

I suspect that the cost base is relatively stable, such that the more revenues are put through the platform, then margins could rise pretty sharply.

Stockdale have also now issued a new Buy note. They have a 25p target, and have raised their forecasts to 0.7p EPS this year and 1.2p EPS next year.

[topvest] 11/2/2019 18:43

Interesting Rivaldo. The downside for this company is that it must win some sort of record for Revenue and Profit achievement divided by the number of announced contract wins by RNS. The conclusion must be that they are winning work based on very low prices. Am I correct?

[rivaldo] 11/2/2019 12:10

New analyst report out - upgraded this year's forecast to £0.5m PBT and a closing £1.1m cash (£0.8m net of debt). Not bad for a £7.7m m/cap company:



Summary:

"Profitable and scalable platform for growth
First annual pre-tax profit, for FY2018

In today’s trading update, EU Supply (“EUS”), the e-procurement software provider, has indicated that it expects to report its first annual pre-tax profit, for recently ended FY2018. We forecast continuing growth in FY2019, with potential for EUS to benefit medium term from its investment in developing new services and its scalable SaaS business model

▪ Continuing growth EUS has advised that FY2018 revenue grew by 10% to approx £5.1m, of which approx 70% (FY2017: 66%) is expected to be of recurring or repeating nature. Final results for FY2018 are subject to audit and are expected to be released in April 2019.
▪ First annual pre-tax profit Importantly, EUS expects to report its first annual profit before tax, expected to be £0.4m profit compared to a £0.2m loss FY2017. In the latter part of FY2018, EUS capitalised £0.3m(FY2017: nil) in IT development costs (net of amortisation) as required under IFRS.
▪ Recurring revenues in new services During H2 FY2018, EUS developed new modules and services for buyers and suppliers to support growing recurring revenue in the medium term. Development of its micro procurement solution (to assist with low value or short-term procurement) is progressing in line with plan, to further aid recurring revenue growth.
▪ Improved forecast profits With EUS indicating FY2018 revenues slightly behind our previous forecasts, we have reduced FY2018 and FY2019 revenues forecasts to £5.1m (was £5.4m) and £5.6m (was £6m). Following the indication from EUS of clear profitability in FY2018 above our previous forecasts, we have increased our forecast PBT to £0.4m for FY2018 (was nil), in line with today’s trading update, and to £0.5m for FY2019 (was nil).

Having focussed in 2016 and 2017 on moving towards and now achieving its target of profitability and in 2018 on developing additional services for recurring revenues, EUS is well placed to focus on adding sales to its profitable platform to deliver its growth plan. With its software-as-a service model, EUS has potential to benefit from operating leverage with growth."

[topvest] 08/2/2019 21:18

Interesting company this one. Been tempted, but never quite got the high conviction to follow through. Worth noting that the profit is solely down to starting to capitalised software development costs. To be honest, I'd always thought it was odd that this company had been writing these off previously which was super prudent!

[phar lap] 08/2/2019 14:48

Review of today's trading update in the SCVR on Stockopedia

[rivaldo] 08/2/2019 07:21

Excellent - 2018 will have been the first profitable year for EUSP.

And £0.4m PBT is "materially above market expectations", which were just £0.1m.

Recurring revenues are up to 70%.

And EUSP have almost £1m net cash to play with - against a £7.7m m/cap.

Things are going very smoothly here.

[rivaldo] 31/1/2019 15:09

Ticking up on decent volumes today. We're due a year end trading update any day now.

[rivaldo] 12/12/2018 11:28

RNS - EUSP have a new 3% holder, with the Swedish Jonas Ljungström & Seglatsen Consulting buying 2.17m shares:



Good to see buying interest from EUSP's homeland.

[rivaldo] 11/12/2018 14:02

There doesn't have to be an equivalent sell. The 120,000 buyer could have been mopping up small sells over the last few days (or even weeks) to fill his order, which has now finally been reported on completion. This is often the only way to build a decent sized position in a micro-cap like EUSP!

[ashtree2] 11/12/2018 13:32

Hi Rivaldo....biggish buy so where is the sell?

[rivaldo] 11/12/2018 12:39

Nice 120,000 buy at 12p today.

[trytotakeiteasy] 05/12/2018 23:49

All good. Trouble is what people really want is: Trading better than expected this year. Or something like that.

[rivaldo] 05/12/2018 08:43

And again....another (RNSNON) contract win. But again this is meatier at €200k. Hopefully EUSP are now eschewing the tiny €50k wins they used to announce.

Alongside being for a decent amount, this is high recurring income too and benefits the next 12 months:

[rivaldo] 30/11/2018 09:32

Another day, another (RNSNON) contract win....this one seems more meaty though, being governmental, covering a range of sectors, a welcome SaaS long-term win - and taking business from the competition:



"Contract Win

EU Supply (LSE AIM: EUSP), the e-procurement software provider, is pleased to announce that the Company's position in Denmark has been further strengthened following a new contract signed with the Danish Government, covering multiple sectors, including a new contract for the licensing and support of CTMTM with the Danish Ministry of Taxation, including its 10 agency procurement departments, of which 3 were previous licensees of competitors' solutions. The new contract is for the delivery of CTMTM as SaaS and related services and runs for a period of 2 years with the option to extend by up to a further 2 years."

[rivaldo] 27/11/2018 19:16

Edited - EM's little pedantries aren't worth my or anyone else's time :o))